'Market has got ahead of itself': Commentators warn first rate hike in ten years not a done deal

Market pricing 90% chance of rate hike

Industry experts have suggested a rise in interest rates may not be as guaranteed as the market expects, pointing to little change in economic data since the last Monetary Policy Committee (MPC) meeting with both wages and UK growth "continuing to disappoint".

Markets are currently pricing in a 90% chance the Bank of England will raise rates by 0.25% for the first time since June 2007 at its November meeting tomorrow with all signs seeming to point to a hike. BoE governor Mark Carney last month revealed a more hawkish stance when he said the Bank could begin "easing its foot off the accelerator" before the end of the year. Furthermore, although the MPC held rates at 0.25% in September, minutes said a tightening of monetary policy could occur due to the "slightly stronger than anticipated" UK economy. However, Laith Khalaf, senior analyst...